Regional banking company Valley National Bancorp (NASDAQ: VLY) reported Q3 2026 results beating Wall Street’s revenue expectations, with sales up 14% year on year to $584.2 million. Its non-GAAP profit of $0.36 per share was 8.7% above analysts’ consensus estimates.
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Valley National Bank (VLY) Q3 2026 highlights:
- Net Interest Income: $505.5 million vs analyst estimates of $506.8 million (13.3% year-on-year growth, in line)
- Net Interest Margin: 3.3% vs analyst estimates of 3.3% (in line)
- Revenue: $584.2 million vs analyst estimates of $578.5 million (14% year-on-year growth, 1% beat)
- Efficiency Ratio: 49.4% vs analyst estimates of 51.5% (215 basis point beat)
- Adjusted EPS: $0.36 vs analyst estimates of $0.33 (8.7% beat)
- Tangible Book Value per Share: $10.15 vs analyst estimates of $10.36 (5.7% year-on-year growth, 2% miss)
- Market Capitalization: $7.19 billion
Ira Robbins, CEO, commented, “Our third quarter results demonstrate the continued improvement in Valley’s profitability. Strong revenue growth and disciplined expense management drove record quarterly net income for Valley and an efficiency ratio below 50 percent. We remain on track to achieve, and likely exceed, our previously stated return on average tangible common equity goal of 15 percent by the end of 2027. We believe that we are structurally well-positioned to navigate a range of potential interest rate scenarios while driving relative net interest margin outperformance. Combined with our strong capital and liquidity, this positioning gives us the flexibility to keep growing alongside our clients as we execute on our strategic priorities.”
Company overview
Tracing its roots back to 1927 during the economic boom before the Great Depression, Valley National Bancorp (NASDAQGS:VLY) operates Valley National Bank, providing commercial, consumer, and wealth management banking services across several states.
Sales growth
Net interest income and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Over the last five years, Valley National Bank grew its revenue at a decent 10.6% compounded annual growth rate. Its growth was slightly above the average banking company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Valley National Bank’s annualized revenue growth of 10.5% over the last two years aligns with its five-year trend, suggesting its demand was stable. 
Note: Quarters not shown were determined to be outliers because they were impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Valley National Bank reported year-on-year revenue growth of 14%, and its $584.2 million of revenue exceeded Wall Street’s estimates by 1%.
Net interest income made up 91.5% of the company’s total revenue during the last five years, meaning Valley National Bank lives and dies by its lending activities because non-interest income barely moves the needle.
Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams.
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Tangible book value per share (TBVPS)
The balance sheet drives banking profitability since earnings flow from the spread between borrowing and lending rates. As such, valuations for these companies concentrate on capital strength and sustainable equity accumulation potential.
When analyzing banks, tangible book value per share (TBVPS) takes precedence over many other metrics. This measure isolates genuine per-share value by removing intangible assets of debatable liquidation worth. Other (and more commonly known) per-share metrics like EPS can sometimes be murky due to M&A or accounting rules allowing for loan losses to be spread out.
Valley National Bank’s TBVPS grew at a decent 5.3% annual clip over the last five years. The last two years show a similar trajectory as TBVPS grew by 5.6% annually from $9.10 to $10.15 per share.
Over the next 12 months, Consensus estimates call for Valley National Bank’s TBVPS to grow by 7% to $10.86, lousy growth rate.
Key takeaways from Valley National Bank’s Q3 results
It was good to see Valley National Bank beat analysts’ EPS expectations this quarter. We were also happy its revenue narrowly outperformed Wall Street’s estimates. On the other hand, its tangible book value per share missed Wall Street’s estimates. Zooming out, we think this was a mixed quarter. The stock remained flat at $13.07 immediately following the results.
Should you buy the stock or not? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
